Swiftnet Claims UK Growth

JACKSON, Mississippi -- Xfone, Inc. (AMEX: XFN, TASE: XFN), an international diversified communications services company, today announced that its wholly-owned UK subsidiary, Swiftnet Limited, reports a substantial growth in network traffic as an additional 20,000 customers started to use its services in the last month. The company is taking steps to increase its network capacity in order to deal with the resulting peak growth in call volumes.

Mr. John Burton, Managing Director of Swiftnet, Xfone, Inc.'s UK subsidiary, said, "The recent growth is being driven primarily through our 'Text & Talk' service. This has attracted new customers as a result of highly attractive pricing that our channel partner Auracall Limited has been able to achieve as part of our on-going cost reduction programs. This service enables mobile customers to make low-cost international calls by paying through a Premium Rate text message. This cost saving service has been particularly well adopted in the market, in particular by Polish immigrants, which have recently arrived in the UK, calling home. With the enlargement of the European Union and free labor markets, the UK continues to see large numbers of immigrant workers, and this growth is expected to accelerate."

Mr. Guy Nissenson, President and CEO of Xfone, Inc., commented, "Our innovative customer offerings have differentiated our service against the competition and we are seeing the results in our traffic growth. We expect this will have a positive effect on the revenues from our UK subsidiary."

XFone Inc. (OTC: XFNE)